Suppose the English Subsidiary of a U

question 15

Multiple Choice

Suppose the English subsidiary of a U.S.firm had current assets of £1 million,fixed assets of £2 million and current liabilities of 1 million pounds both at the start and at the end of the year.There are no long-term liabilities.If the pound depreciated during that year from $1.50 to $1.30,the translation gain loss to be included in the parent company's equity account according to FASB #52 is

• A)0 since the current assets and current liabilities cancel
• B)+$200,000
• C)-$250,000
• D)-$400,000

---

Definitions:

Logical Operation

An operation in computational and digital systems that is based on binary inputs and yields a binary output, following logical principles.

Control Circuit

An electrical circuit designed to control the operation of a main power circuit, often used in applications like motor starts and stops.

Physical Connections

Refers to the tangible linkages or joints between two parts or components within a system.